DRIVERS OF GREEN SUPPLY CHAIN INITIATIVES AND THEIR IMPACT ON ECONOMIC PERFORMANCE OF FIRMS: EVIDENCE FROM PAKISTAN'S MANUFACTURING SECTOR

The adoption and implementation of green supply chain management (GSCM) initiatives within an organization have been claimed to create specific ecological, competitiveness and monetary benefits. This study explores the drivers of GSCM initiatives and their effect on the economic performance of manufacturing companies in three sectors (textile, chemical, and pharmaceutical) of Pakistan's economy. The three driver social pressure, competitive pressure, and institutional pressure were chosen as the enablers of GSCM initiatives in Pakistan's manufacturing sector. The data was collected through a questionnaire distributed among managerial level employees working in the manufacturing industry of Pakistan. The study was based on the evaluation of 263 responses through partial least squares structural equation modeling (PLS-SEM) method. The results show that institutional pressures are the most significant enablers towards competitiveness and instituting GSCM initiatives, while social pressures and competitive pressures also have a substantial impact. The effect of GSCM initiatives on firm competitiveness and economic performance was also analyzed and found to be significant. The presented results may be seen as useful for managers, practitioners and policy makers, as well as for society in general in various ways.